Petroleum and Gas Revenue Tax Act (R.S.C., 1985, c. P-12)

Returns

Marginal note:To be filed with Minister

• 11 (1) A return of production revenue for each taxation year for which a tax under this Part is payable shall, without notice or demand therefor, be filed with the Minister in prescribed form containing prescribed information,

  • (a) in the case of a corporation, commission or association, by it or on its behalf within six months from the end of the year;

  • (b) in the case of an individual who has died without making the return, by the legal representative of that individual within six months from the day of death;

  • (c) in the case of an estate or trust, by the trustee or legal representative of the estate or trust within ninety days from the end of the year;

  • (d) in the case of any other person, by that person on or before the last day of April in the next year or, if he is unable for any reason to file the return, by the guardian, curator, tutor, committee or other legal representative of that person on or before that day; or

  • (e) where no person described in any of paragraphs (a) to (d) has filed the return, by such person as is required by notice in writing from the Minister to file the return, within such reasonable time as the notice specifies.

• Marginal note:Demand for returns

  (2) Whether or not he is liable to pay tax under this Part for a taxation year and whether or not a return has been filed under subsection (1) or (3), every person shall, on demand from the Minister, served personally or by registered letter, file, within such reasonable time as may be stipulated therein, with the Minister in prescribed form and containing prescribed information a return of the production revenue for the taxation year designated in the demand.

• Marginal note:Trustees, etc.

  (3) Every trustee in bankruptcy, assignee, liquidator, curator, receiver, trustee or committee and every agent or other person administering, managing, winding-up, controlling or otherwise dealing with the property, business, estate or income of a person who has not filed a return for a taxation year as required by this section shall file a return in prescribed form of the production revenue of that person for that year.

• (4) [Repealed, R.S., 1985, c. 2 (2nd Supp.), s. 8]

Marginal note:Estimate of tax

12 Every person required by section 11 to file a return of production revenue shall, in the return, estimate the amount of tax payable.

Marginal note:Assessment

• 13 (1) The Minister shall, with all due dispatch, examine a taxpayer’s return of production revenue for a taxation year and assess the tax for the year and the interest and penalties, if any, payable.

• Marginal note:Notice of assessment

  (2) After examination of a return of production revenue, the Minister shall send a notice of assessment to the person by whom the return was filed.

• Marginal note:Liability unaffected

  (3) Liability for the tax payable under this Part is not affected by an incorrect or incomplete assessment or by the fact that no assessment has been made.

• Marginal note:Notice of assessment, etc., at later date

  (4) The Minister may at any time assess tax, interest or penalties under this Part or notify in writing any person by whom a return of production revenue for a taxation year has been filed that no tax is payable for the taxation year, and may

  • (a) at any time, if the taxpayer or person filing the return

    • (i) has made any misrepresentation that is attributable to negligence, carelessness or wilful default or has committed any fraud in filing the return or in supplying any information under this Part, or

    • (ii) has filed with the Minister a waiver in prescribed form within four years from the day of mailing of a notice of an original assessment or of a notification that no tax is payable for a taxation year, and

  • (b) within four years from the day referred to in subparagraph (a)(ii), in any other case,

  reassess or make additional assessments, or assess tax, interest or penalties under this Part, as the circumstances require.

• Marginal note:Revocation of waiver

  (4.1) Where the Minister would, but for this subsection, be entitled to reassess, make an additional assessment or assess tax, interest or penalties by virtue only of the filing of a waiver under subparagraph (4)(a)(ii), the Minister may not make such reassessment, additional assessment or assessment after the day that is six months after the date on which a notice of revocation of the waiver in prescribed form is filed.

• Marginal note:Non-inclusion of certain amounts

  (5) Notwithstanding subsection (4), there shall not be included in computing the production revenue of a taxpayer, for the purposes of any reassessment, additional assessment or assessment of tax, interest or penalties under this Part that is made after the expiration of four years from the day referred to in subparagraph (4)(a)(ii),

  • (a) any amount that was not included in computing the production revenue of the taxpayer for the purposes of an assessment of tax under this Part made before the expiration of four years from that day;

  • (b) any amount in respect of which the taxpayer establishes that the failure so to include it did not result from any misrepresentation that is attributable to negligence, carelessness or wilful default or from any fraud in filing a return of his production revenue or supplying any information under this Part; and

  • (c) where any waiver has been filed with the Minister, in the form and within the time referred to in subsection (4), with respect to a taxation year to which the reassessment, additional assessment or assessment of tax, interest or penalties, as the case may be, relates, any amount that the taxpayer establishes cannot reasonably be regarded as relating to a matter specified in the waiver.

• Marginal note:Minister not bound

  (6) The Minister is not bound by a return or information supplied by or on behalf of a taxpayer and, in making an assessment, may, notwithstanding a return or information so supplied or if no return has been filed, assess the tax payable under this Part.

• Marginal note:Assessment deemed valid

  (7) An assessment shall, subject to being varied or vacated on an objection or appeal under this Part and subject to a reassessment, be deemed to be valid and binding notwithstanding any error, defect or omission therein or in any proceeding under this Act relating thereto.

Payment of Tax

Marginal note:By whom payable

• 14 (1) Every person who has production revenue shall pay the tax required by this Part to be paid thereon.

• Marginal note:Corporations, when payable

  (2) Every corporation, commission and association shall, during the period commencing on the first day of a taxation year and ending two months after the end of the year, pay, in accordance with one of the following paragraphs, to the Receiver General:

  • (a) on or before the last day of each month in the year, an amount equal to one-twelfth of the amount, if any, by which the amount estimated by it to be the tax payable on its production revenue for the year exceeds the aggregate of all amounts each of which is the amount, if any, estimated by it to be deductible from its tax otherwise payable for the year under subsection 9(5) or 10(1) or (7),

  • (b) on or before the last day of each month in the year, an amount equal to one-twelfth of its first instalment base for the year, or

  • (c) on or before the last day of each of the first two months in the year, an amount equal to one-twelfth of its second instalment base for the year, and on or before the last day of each other month in the year, an amount equal to one-tenth of the amount remaining after deducting the amount computed pursuant to this paragraph in respect of the first two months in the year from its first instalment base for the year,

  and shall, on or before the last day of the period, pay to the Receiver General the remainder of the amount, if any, by which the amount estimated by it to be the tax payable on its production revenue for the year exceeds the aggregate of all amounts each of which is the amount, if any, estimated by it to be deductible from its tax otherwise payable for the year under subsection 9(5) or 10(1) or (7).

• (3) [Repealed, R.S., 1985, c. 2 (2nd Supp.), s. 10]

• Marginal note:Individuals, when payable

  (4) Every individual other than a trust, shall pay to the Receiver General

  • (a) on or before March 31, June 30, September 30 and December 31, in each taxation year, an amount equal to one-fourth of

    • (i) the amount, if any, by which the amount estimated by the individual to be the tax payable under this Part by that individual for the year exceeds the amount estimated by him to be deductible from his tax otherwise payable for the year under subsection 9(5), or

    • (ii) his instalment base for the year; and

  • (b) on or before the day on which that individual is required to file a return of production revenue for the year, the remainder of the amount, if any, by which the amount estimated by that individual to be the tax payable under this Part by him for the year exceeds the amount estimated by him to be deductible from his tax otherwise payable for the year under subsection 9(5).

• Marginal note:Where individual a trust

  (5) Every individual that is a trust shall pay to the Receiver General

  • (a) on or before the last day of each of the third month, the sixth month, the ninth month and the twelfth month of each taxation year, an amount equal to one-fourth of

    • (i) the amount, if any, by which the amount estimated by it to be the tax payable on its production revenue for the year exceeds the amount estimated by it to be deductible from its tax otherwise payable for the year under subsection 9(5), or

    • (ii) its instalment base for the year; and

  • (b) on or before the day on which it is required to file a return of production revenue for the year, the remainder of the amount, if any, by which the amount estimated by it to be the tax payable on its production revenue for the year exceeds the amount estimated by it to be deductible from its tax otherwise payable for the year under subsection 9(5).

• Marginal note:Tax to be paid on assessment

  (6) Every taxpayer shall, within thirty days after the day of mailing to the taxpayer of a notice of assessment, pay to the Receiver General any part of the assessed tax, interest and penalties then remaining unpaid, whether or not an objection to or appeal from the assessment is outstanding.

• Marginal note:Direction to pay forthwith

  (7) Where, in the opinion of the Minister, a taxpayer is attempting to avoid payment of taxes under this Part, the Minister may, in writing, direct that all taxes, interest and penalties be paid forthwith on assessment.

• Marginal note:Payments on behalf of taxpayer

  (8) Every person required by section 11 to file a return of the production revenue of any other person for a taxation year shall, within thirty days from the day of mailing of the notice of assessment, pay all taxes, interest and penalties payable by or in respect of that other person under this Part to the extent that he has or had, at any time since the taxation year, in his possession or control property belonging to that other person or his estate and shall thereupon be deemed to have made that payment on behalf of the taxpayer.

• Marginal note:Certificate of Minister required

  (9) Every assignee, liquidator, administrator, executor and other like person, other than a trustee in bankruptcy, shall, before distributing any property under his control, obtain a certificate from the Minister certifying that taxes, interest or penalties that have been assessed under this Part and that are chargeable against or payable out of the property have been paid or that security for the payment thereof has been accepted by the Minister.

• Marginal note:Liability where no certificate

  (10) Distribution of property without a certificate required by subsection (9) renders the person required to obtain the certificate personally liable for the unpaid taxes, interest and penalties.

• Marginal note:Definition of “instalment base”

  (11) In this section and section 15, “first instalment base” and “second instalment base” in respect of a corporation, commission or association for a taxation year and instalment base in respect of an individual for a taxation year have the meanings assigned to those expressions by the regulations.

• (12) [Repealed, R.S., 1985, c. 2 (2nd Supp.), s. 10]

General Provisions

Marginal note:Interest

• 15 (1) Where at any particular time after the day on or before which a return of a taxpayer’s production revenue was required to be filed under this Part for a taxation year,

  • (a) the amount of the taxpayer’s tax payable for the year under this Part

  exceeds

  • (b) the aggregate of all amounts each of which is an amount paid at or before the particular time on account of the taxpayer’s tax payable and applied as at that time by the Minister against the taxpayer’s liability for an amount payable under this Part for the year,

  the person liable to pay the tax shall pay interest on such excess, for the period during which it is outstanding, at such rates per annum prescribed for the purposes of subsection 161(1) of the Income Tax Act as are in effect from time to time during the period.

• Marginal note:Idem

  (2) In addition to the interest payable under subsection (1), where a taxpayer, being required by this Part to pay a part or an instalment of tax, has failed to pay all or any part thereof, that taxpayer shall, on payment of the amount he failed to pay, pay interest at the rate per annum referred to in subsection (1) from the day on or before which he was required to make the payment to the day of payment or the beginning of the period in respect of which he becomes liable to pay interest thereon under subsection (1), whichever is earlier.

• Marginal note:Deemed liability of individual

  (3) For the purposes of subsection (2), where an individual, other than a trust, is required to pay a part or an instalment of tax for a taxation year computed by reference to

  • (a) the amount, if any, by which the amount estimated by that individual to be the tax payable under this Part by him for the year exceeds the amount estimated by him to be deductible from his tax otherwise payable for the year under subsection 9(5), or

  • (b) his instalment base for the year,

  he shall be deemed to have been liable to pay a part or an instalment computed by reference to the lesser of

  • (c) the amount, if any, by which the tax payable under this Part by him for the year exceeds the amount deducted under subsection 9(5) from his tax otherwise payable, and

  • (d) his instalment base for the year.

• Marginal note:Where individual a trust

  (4) For the purposes of subsection (2), where an individual that is a trust is required to pay a part or an instalment of tax for a taxation year computed by reference to

  • (a) the amount, if any, by which the amount estimated by it to be the tax payable on its production revenue for the year exceeds the amount estimated by it to be deductible from its tax otherwise payable for the year under subsection 9(5), or

  • (b) its instalment base for the year,

  it shall be deemed to have been liable to pay a part or an instalment computed by reference to the lesser of

  • (c) the amount, if any, by which the tax payable by it on its production revenue for the year exceeds the amount deducted under subsection 9(5) from its tax otherwise payable, and

  • (d) its instalment base for the year.

• Marginal note:Deemed liability of corporation

  (5) For the purposes of subsection (2), where a corporation, commission or association is required to pay a part or an instalment of tax for a taxation year computed by reference to a method described in subsection 14(2), it shall be deemed to have been liable to pay a part or an instalment computed by reference to

  • (a) the amount, if any, by which the tax payable by it on its production revenue for the year exceeds the aggregate of all amounts each of which is the amount, if any, deducted under subsection 9(5) or 10(1) from its tax otherwise payable for the year,

  • (b) its first instalment base for the year, or

  • (c) its second instalment base for the year and its first instalment base for the year,

  whichever method gives rise to the least amount required to be paid by it on or before the days referred to in paragraph 14(2)(a), (b) or (c).

• (6) [Repealed, R.S., 1985, c. 2 (2nd Supp.), s. 11]